---
title: Navigating the Sunset of the TCJA Provisions in 2025
description: Navigating the Sunset of the TCJA Provisions in 2025
image: https://info.ongandcompany.com/hubfs/Backgrounds/Kansas-City-Missouri-1.jpg
---
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# Navigating the Sunset of the TCJA Provisions in 2025
[Nick Ong](https://info.ongandcompany.com/blog/author/nick-ong) / September 06, 2024 /
[Tax Planning](https://info.ongandcompany.com/blog/topic/tax-planning), [Tax Cuts and Jobs Act](https://info.ongandcompany.com/blog/topic/tax-cuts-and-jobs-act)
**New Beneficial Information Navigating the Sunset of the Tax Cuts and Jobs Act - Recording and Reading Materials**
Our team recently hosted a webinar on Navigating the Sunset of the Tax Cuts and Jobs Act changes that expires December 31st, 2025. Links to the webinar and presentation material are provided below, and a summary of the information is provided in the text below. We recommend that you review this information to understand how these new changes impact you, as it is applicable to all individuals, U.S. registered corporations, LLCs, or similar entities, with very limited exceptions.
[Click Here for Link to Webinar](https://us02web.zoom.us/rec/share/nBe7K-fqYiNQYk0KYRNi9ynmmbkPMSQrmM0lhQk8z1fW1CBeYD07vkhgvbSLv5_C.HOCxkFIITiYfDv4r) > Passcode:: fp*E2$4x
[Click Here for Link to Presentation PDF](https://info.ongandcompany.com/hubfs/2024.09.04%20Navigating%20the%20Sunset%20of%20the%20TCJA%20Provisions%20VF.pdf)
** **
**What has changed?**
The Tax Cuts and Jobs Act (TCJA) made some significant changes to both business and personal taxes when it went into effect in 2018. Many of these changes affected tax deductions and credits, depreciation, and expensing so they impacted virtually every taxpayer.
The 2017 Tax Cuts and Jobs Act (TCJA) reduced average tax burdens for taxpayers across the income spectrum by temporarily changing the structure of the individual income tax, including lower rates, wider brackets, a larger [standard deduction](https://taxfoundation.org/taxedu/glossary/standard-deduction/) and child [tax credit](https://taxfoundation.org/taxedu/glossary/tax-credit/) in lieu of personal and dependent exemptions, and limitations on itemized deductions. The reforms also reduced the individual income tax compliance burden by making it more advantageous for most filers to take the standard deduction and by eliminating the complexity of calculating their taxes again under the alternative minimum tax for millions of filers. Those changes all expire at the end of 2025, along with several TCJA business provisions over the next several years.
**Individual Tax Changes**
- Individual tax rates: The TCJA lowered tax rates to 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The top rate decreased to 37% from 39.6%. These tax rates are set to sunset Dec. 31, 2025. The top tax rate beginning Jan. 1, 2026, reverts to 39.6%.
- Standard deduction: The standard deduction was nearly doubled for all filing statuses ($12,000 for single filers and $24,000 for married filing jointly) by the TCJA. As a result, many taxpayers have not itemized deductions. Starting in 2026, the standard deduction will be about half of what it is currently, adjusted for inflation.
- Itemized deductions
- Child tax credit
- Personal exemptions
- Alternative minimum tax (AMT) exemption and phaseout: The TCJA increased exemption amounts as well as the exemption phaseout threshold, lessening the AMT burden on taxpayers. At sunset, the AMT exemption will revert to pre-TCJA levels.
**Business Tax Changes:**
- Corporate tax rate: The TCJA permanently changed the corporate tax rate structure, which previously had
a top rate of 35%, to a flat 21% tax rate regardless of the amount of corporate taxable income. This
provision is one of the few that will not expire at the end of 2025.
- Qualified business income (QBI) 20% deduction (Sec. 199A): Owners of passthrough businesses, such as
partnerships and S corporations, as well as sole proprietorships, may currently claim a deduction of up to
20% of QBI. Beginning in 2026, the Sec. 199A QBI deduction no longer will be available.
- Bonus depreciation on qualified property: Sec. 168(k) allows an additional first-year depreciation
deduction equal to an applicable percentage of the cost basis of qualified property placed in service
during the year. The TCJA changed the applicable percentages and qualifying property. Used property
currently qualifies for bonus depreciation, except for property purchased from related parties.
**Planning Opportunities:**
- Accelerate Income Into 2024-2025
- Roth Conversions
- Accelerate Distributions on Inherited IRAs
- Consider Distributions in Excess of RMD
- Gifting and Transfer of Income-Producing Assets
- Defer Deductions to 2026
- Business Deductions
- Charitable Contributions
- Miscellaneous Itemized Deductions
- Mortgage Interest
- State and Local Taxes
- Reconsider Roth Versus Traditional Contributions After 2025 and Optimize Retirement Contributions
- Reconsider Business Structure
- Maximize the Qualified Business Income Deductions
- Strategically Realize Capital Gains (requires careful planning)
- Exercise ISOs (requires careful planning)
Please do not hesitate to reach out with any questions as we are happy to help!
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